Ex-Banker Loses ₹23 Crore in Shocking Digital Arrest Scam and Issues a Wake-Up Call

In a chilling case of cybercrime, Naresh Malhotra, a 78-year-old retired banker from New Delhi, lost his entire life savings of ₹23 crore to a sophisticated "digital arrest" scam that unfolded between August 1 and September 14, 2025. The fraudsters, posing as officials from the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and Mumbai Police, manipulated Malhotra into transferring his wealth under the guise of verifying his assets for a fabricated terror funding investigation.

The ordeal began on August 1 with a call from an individual claiming to represent a mobile connection company, alleging that Malhotra’s Aadhaar card was linked to a phone number used in terror funding activities in Mumbai. The call was swiftly escalated to imposters posing as Mumbai Police officers, who communicated via WhatsApp, intensifying pressure by accusing Malhotra of involvement in serious crimes, including terrorism. Threatened with legal action against himself and his family, Malhotra was coerced into secrecy and compliance.

Initially, the scammers demanded details of his savings, starting with a transfer of ₹14 lakh for "verification," accompanied by forged Reserve Bank of India (RBI) certificates to lend credibility to their scheme. As their greed escalated, they probed Malhotra’s mutual funds, systematic investment plans (SIPs), and other assets, claiming the verification was mandated by the Bombay High Court. Over the course of a month, Malhotra was confined to his home under "digital arrest," permitted to leave only to visit banks to liquidate investments and transfer funds to accounts provided by the fraudsters. Each transaction was followed by additional forged RBI certificates, falsely assuring the return of his money.

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The scam reached a turning point on September 14, when the fraudsters demanded an additional ₹5 crore, claiming it was to be deposited in the name of the Registrar of the Supreme Court into a private bank account in West Bengal. Sensing deceit, Malhotra refused, threatening to approach the Supreme Court directly and surrender to the Hauz Khas Police Station. The calls ceased abruptly, and on September 19, realizing he had been defrauded, Malhotra reported the crime to the Delhi Police.

“I spent my life building security for my old age. In one month, it all disappeared because I trusted the wrong people,” Malhotra said, visibly emotional. “I hope my story serves as a warning.” The Intelligence Fusion and Strategic Operations (IFSO) unit of the Delhi Police, specializing in cybercrimes, is now investigating. Authorities have frozen ₹2.67 crore of the stolen funds across multiple accounts, uncovering a complex web of over 4,000 layered accounts used to siphon and obscure the money trail nationwide.

A senior police officer involved in the investigation stated, “The funds were moved through multiple accounts to evade detection, but we are confident we will crack the case soon and apprehend those responsible.” Malhotra’s devastating experience highlights the growing menace of digital scams and underscores the need for public awareness and vigilance to combat increasingly sophisticated cybercrimes.

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